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A merchant purchases a wrist watch for Rs. 450 and fixes its list price in such a way that after allowing a discount of 10%, he earns a profit of 20%. Then the list price of the watch is ________.1). Rs. 6502). Rs. 7003). Rs. 5504). Rs. 600 |
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Answer» LET the LIST price of a watch be Rs. m. Cost price of a watch = Rs. 450 Discount percentage = 10% Selling price of a watch = m – m × 10/100 = 9m/10 Profit percentage = 20% Profit percentage = [(S.P – C.P)/C.P] × 100 ⇒ 20 = [(9m/10 – 450)/450] × 100 ⇒ 90 = 9m/10 – 450 ⇒ 9m/10 = 540 ⇒ m = 600 ∴ List price of a watch is Rs. 600. |
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